David Glockner, Regional Director of Chicago Office, to Leave SEC

The Securities and Exchange Commission today announced that David Glockner, Director of the Chicago Regional Office, is planning to leave the agency later this month.

Since late 2013, Mr. Glockner has led a staff of approximately 270 enforcement attor…

Petroleum Engineer Settles Charges of Insider Trading Ahead of Oil Discovery Announcement

A petroleum engineer who worked at Texas-based energy company Apache Corporation has agreed to settle SEC charges that he conducted insider trading ahead of a market-moving announcement about the company’s discovery of a significant new oil source.

Th…

Millennium Settles Charges of Illegal Short Selling in Advance of Stock Offerings

Investment advisory firm Millennium Management LLC has agreed to pay more than $630,000 to settle charges that it shorted U.S. stocks in companies planning follow-on offerings and then illegally bought shares in the follow-on offerings.   

An SEC inve…

Day Trader Charged in Brokerage Account Takeover Scheme

The Securities and Exchange Commission today charged a day trader based in the Philadelphia area with participating in a scheme to access the brokerage accounts of more than 100 unwitting victims and make unauthorized trades to artificially affect the …

SEC Names Peter B. Driscoll as Director of the Office of Compliance Inspections and Examinations

The Securities and Exchange Commission today announced that Peter B. Driscoll has been named Director of the agency’s Office of Compliance Inspections and Examinations (OCIE).  Mr. Driscoll has served as OCIE’s Acting Director since January 2017.

OC…

SEC Announces Measures to Facilitate Cross-Border Implementation of the European Union’s MiFID II’s Research Provisions

Today, following consultation with European authorities, and in response to concerns that investors could lose access to valuable research, the staff of the U.S. Securities and Exchange Commission issued three related no-action letters. These letters…

Former Private Equity Firm Partner Charged With Secretly Billing Clients for His Vacations and Salon Visits

The Securities and Exchange Commission today charged Mohammed Ali Rashid, a former senior partner at Apollo Management L.P., with defrauding his fund clients by secretly billing them for approximately $290,000 in personal expenditures, including his fa…

SEC Names Brett Redfearn as Director of the Division of Trading and Markets

The Securities and Exchange Commission today announced that Brett Redfearn has been named Director of the agency’s Division of Trading and Markets.

The SEC’s Division of Trading and Markets establishes and maintains standards for fair, orderly, and efficient markets. The division oversees the major securities market participants and infrastructure including, among others, broker-dealers, self-regulatory organizations (including stock exchanges, the Financial Industry Regulatory Authority, the Municipal Securities Rulemaking Board, and clearing agencies), alternative trading systems, and transfer agents.

“Brett’s extensive markets experience and his longstanding, active engagement with investors, financial services firms, exchanges, and the SEC make him exceptionally well positioned to lead the Division of Trading and Markets,” said Chairman Jay Clayton. “Brett has been a thought leader on a wide range of issues facing our rapidly changing capital markets, and I know he will continuously ask the question, ‘are our markets best serving the long-term interests of the investing public?'”

Mr. Redfearn added, “I have always been impressed with the level of dedication of the Trading and Markets team and feel honored to be asked to take on this important role at this critical juncture in the evolution of our securities markets.”

Mr. Redfearn has a long history in the U.S. equity markets, having worked with investors, exchanges and broker-dealers. During his career, Mr. Redfearn has focused on how technology, regulation and business trends are changing trading patterns across asset classes and geographic regions. He has helped build electronic trading products, worked closely with exchanges and other trading venues as these products evolved, and engaged with global asset managers on major regulatory developments. He has also been a frequent contributor at policy forums surrounding U.S. equity markets, and has been an active participant at several meetings of the SEC’s Equity Market Structure Advisory Committee.

Mr. Redfearn joins the SEC from J.P. Morgan, where he was Global Head of Market Structure for the Corporate & Investment Bank. He started his career at the American Stock Exchange, where he ran Business Strategy and Equity Order Flow. During his career, Mr. Redfearn has served on the boards of Bats Global Markets, the Chicago Stock Exchange, BIDS Trading, and the National Organization of Investment Professionals.

Mr. Redfearn earned his M.A. in Political Science from the New School for Social Research and his B.A. from the Evergreen State College in Olympia, Washington. 

SEC Names Brett Redfearn as Director of the Division of Trading and Markets

The Securities and Exchange Commission today announced that Brett Redfearn has been named Director of the agency’s Division of Trading and Markets.

The SEC’s Division of Trading and Markets establishes and maintains standards for fair, orderly, and ef…

SEC Announces 2017 Government-Business Forum to Be Held at University of Texas at Austin

The Securities and Exchange Commission today announced it is partnering with the Herb Kelleher Center for Entrepreneurship, Growth, and Renewal at the McCombs School of Business at The University of Texas at Austin to host the SEC’s annual Government-Business Forum on Small Business Capital Formation on November 30.  This annual forum provides a platform to highlight additional measures to improve small business capital formation and address whether unnecessary, duplicative, or outdated regulations can be eliminated or reduced.

“The annual Government-Business Forum on Small Business Capital Formation provides the opportunity to hear directly from small businesses about their experiences interacting with investors and our regulatory system in a very important segment of our capital markets,” said Chairman Jay Clayton. “As a hub for innovation, Austin is a fitting place for this discussion. I look forward to the forum’s recommendations and will carefully consider them as we work to fulfill the SEC’s mission.”

The morning session will feature a panel discussion exploring how capital formation options are working for small businesses, including small businesses in Texas.  Participants will then work in groups to formulate specific policy recommendations.  Information on the panel participants and the full agenda will be announced in November and available on the forum webpage.

The forum will begin at 9 a.m. Central Time and will be open to the public. It will be held in the AT&T Executive Education and Conference Center on the campus of The University of Texas at Austin.  The opening remarks and panel discussion will be webcast live.  The breakout group sessions will not be webcast but will be accessible by teleconference for those not attending in person.  Anyone wishing to participate in a breakout group either in person or by teleconference must register online by November 27.

The online registration will soon be available on the forum webpage.

Members of the public are invited to suggest recommendations or topics to be discussed at the forum by calling the SEC’s Office of Small Business Policy at (202) 551-3460.

SEC Announces 2017 Government-Business Forum to Be Held at University of Texas at Austin

The Securities and Exchange Commission today announced it is partnering with the Herb Kelleher Center for Entrepreneurship, Growth, and Renewal at the McCombs School of Business at The University of Texas at Austin to host the SEC’s annual Government-B…

Rio Tinto, Former Top Executives Charged With Fraud

The Securities and Exchange Commission today charged mining company Rio Tinto and two former top executives with fraud for inflating the value of coal assets acquired for $3.7 billion and sold a few years later for $50 million.

The SEC’s complaint, which was filed in federal court in Manhattan, alleges that Rio Tinto, its former CEO Thomas Albanese, and its former CFO Guy Elliott failed to follow accounting standards and company policies to accurately value and record its assets.  Instead, as the project began to suffer one setback after another resulting in the rapid decline of the value of the coal assets, they sought to hide or delay disclosure of the nature and extent of the adverse developments from Rio Tinto’s Board of Directors, Audit Committee, independent auditors, and investors.

“As alleged in our complaint, Rio Tinto’s top executives allegedly breached their disclosure obligations and corporate duties by hiding from their board, auditor, and investors the crucial fact that a multi-billion dollar transaction was a failure,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division.

“Rio Tinto and its top executives allegedly failed to come clean about an unsuccessful deal that was made under their watch.  They tried to save their own careers at the expense of investors by hiding the truth,” said Steven Peikin, Co-Director of the SEC’s Enforcement Division.

Based on the complaint’s allegations, Rio Tinto plc, Rio Tinto Limited, Albanese, and Elliott are charged with violating the antifraud, reporting, books and records and internal controls provisions of the federal securities laws.  The SEC seeks permanent injunctions, return of allegedly ill-gotten gains plus interest, and civil penalties from all the defendants, and seeks to bar Albanese and Elliott from serving as public company officers or directors.

According to the SEC’s complaint, in 2011, Rio Tinto acquired coal assets in Mozambique shortly after disclosing huge losses associated with its previous large-scale acquisition of Alcan.  Both acquisitions took place under Albanese’s leadership.  The second acquisition was also unsuccessful as it was based on the incorrect assumption that Rio Tinto could inexpensively mine, transport, and sell large quantities of high-quality coal, chiefly using barges for shipping.  The SEC’s complaint alleges that the project suffered setbacks almost immediately, as Rio Tinto, Albanese, and Elliott learned that there was less coal and of lower quality than expected, and that Mozambique had rejected its barge application. The complaint alleges that the drop in quantity and quality of coal, coupled with the lack of infrastructure to transport it, significantly eroded the value of the acquisition.

The complaint alleges that after already impairing Alcan twice, Rio Tinto, Albanese, and Elliott knew that publicly disclosing its second failure and rapidly declining value would call into question their ability to pursue the core of Rio Tinto’s business model to identify and develop long-term, low-cost, and highly-profitable mining assets.  Instead, they concealed the adverse developments, allowing Rio Tinto to release misleading financial statements days before a series of U.S. debt offerings.  Rio Tinto raised $5.5 billion from U.S. investors, approximately $3 billion of which was raised after May 2012, when executives at Rio Tinto Coal Mozambique had already told Albanese and Elliott that the subsidiary was likely worth negative $680 million.  The complaint alleges Albanese then repeated and reinforced the false positive outlook for the project in public statements.

The alleged fraud continued until January 2013, when an executive in Rio Tinto’s Technology & Innovation Group discovered that the coal assets were being carried at an inflated value on Rio Tinto’s financial statements.  After an internal review allegedly triggered by the executive’s report to Rio Tinto’s Chairman, Rio Tinto announced that Albanese had resigned and the company reduced the value of the coal assets by more than $3 billion, or more than 80 percent.  After a second reduction, Rio Tinto sold the Mozambique subsidiary for $50 million, billions of dollars below the acquisition price.

The SEC’s investigation was conducted by D. Mark Cave, Jeffrey Weiss, and George Spanos and supervised by Melissa Hodgman.  The SEC’s litigation will be conducted by Mr. Cave, Dean Conway, and Gregory Miller, and supervised by Bridget Fitzpatrick.  The SEC greatly appreciates the assistance and collaboration of the U.K. Financial Conduct Authority and the Australian Securities & Investments Commission.